Australian Banks - Confidence Lost

Taken from our Global monthly research, allocations in Australian Banking stocks have hit their lowest levels in at least 8-years among Global equity managers. The charts below show the scale of the reduction, with average holding weights hitting just 0.05% and the percentage of funds who have any exposure to the Australian banking sector at an all-time low of just 9%, with 3% overweight vs the I-Shares ACWI ETF. Australian Banks are the 2nd largest banking underweight among all countries, with only US banks at lower levels, though their absolute weight is much higher.


All of the 4 major banks have suffered, with the percentage of funds with exposure to each bank at, or close to all-time lows. The reduction in holdings in ANZ Banking Group has been particularly brutal.


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Steven Holden